Atlanta-based Regional Health Properties has received another notice from the NYSE American LLC that it is not in compliance with one of the stock exchange’s continued listing standards, the self-managed healthcare real estate investment company reported Thursday.
RHP said it was informed of its second noncompliance issue of 2023 in a June 29 letter.
The latest notice refers to a standard that requires a listed company to have shareholder equity of at least $2 million if it has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years. The company reported shareholder equity of approximately $1.8 million as of March 31 and has had losses from continuing operations and/or net losses in two of its three most recent fiscal years ended Dec. 31.
RHP’s first notice of noncompliance in 2023 came from the exchange in May and involved a different listing standard. That one requires that a listed company have shareholder equity of at least $4 million if it has reported losses from continuing operations or net losses in three of its four most recent fiscal years.
In response to the first notice, RHP submitted a plan to the exchange addressing how it will work to regain compliance by Nov. 10, 2024. The company is waiting to hear whether the exchange has approved its plan.
“If the plan is accepted, the Company will also be subject to periodic Exchange reviews, including quarterly monitoring for compliance with the plan,” RHP said.
RHP will be subject to delisting proceedings if the exchange does not accept the plan or if the exchange accepts the plan but RHP is not in compliance with the continued listing standards, including all shareholders’ equity standards, by Nov. 10, 2024, or if the company does not make progress consistent with its plan. If RHP’s stock is delisted, the company will be able to appeal the decision.
RHP’s common stock and Series A redeemable preferred shares will continue to trade under the symbols RHE and RHE-PA, respectively, but each will have an added designation of .BC to indicate that the company is not in compliance with the exchange’s continued listing standards.